Competitive Strategy Of The Tobacco Business Enterprises

After entering WTO, Chinese tobacco industry must face the competition of multinational tobacco companies. Chinese tobacco monopoly system ensures the flourish of tobacco industry, but it limits free competitions in this industry at the same time. It is the globalization tendency that tobacco monopoly system should be cancelled to promote free competitions in tobacco industry. So it is the arduous task for Chinese tobacco companies to find the right way to compete with multinational tobacco companies.This article analyzes the competition strategies of multinational tobacco companies and Chinese tobacco companies. And it points out that whether the diversification competition strategy of Chinese tobacco companies'succeed or fail depends on how to carry it out. There are four chapters of this article. The first chapter introduces the current status and tendency of global tobacco industry; the second chapter analyzes Chinese tobacco industry with the tools of PEST and five competition force model; the third chapter analyzes the competition strategy of Chinese tobacco companies and multinational tobacco companies with the datum of the first two chapters;the fourth chapter analyzes the diversification strategy of HONGTA tobacco company as the case; and the competition strategy of Sichuan tobacco company with the tools of SWOT for instance. And the last chapter introduces some advice that Chinese tobacco companies should pay attention to when they carry their competition strategies out.